Following a lawsuit, TikTok has agreed to pay settlements of $ 92 million to American users. The class actions accuse the platform of violating computer fraud and abuse laws and privacy laws in California and Illinois.
There have been a total of 21 lawsuits in the United States involving 89 million users, some of whom were children under the age of six. You claim that TikTok collected the “highly sensitive personal information” of its users without their consent or knowledge before it was sold to advertisers.
The lawsuit alleges that TikTok violated the Computer Fraud and Abuse Act for transferring personal information. In addition, the company is accused of compromising people’s privacy when using facial recognition.
It is alleged that users’ faces were analyzed and this information was used to categorize users based on age, gender and ethnicity for advertising and tracking purposes.
The deal, in which almost all US users would participate, is described as one of the “largest payouts related to data protection in history”.
Ekwan Rhow, Co-Lead Counsel on the lawsuit, said, “This is one of the largest settlements ever made in a BIPA consumer case, and one of the largest settlements in a class privacy lawsuit. It serves as a reminder to businesses that privacy issues are important and they will be held accountable for violations of consumer rights. “
TikTok has denied the allegations. However, it chose to resolve the case anyway instead of spending a lot of time litigating.
A spokesperson said, “While we disagree with the allegations, rather than engaging in lengthy litigation, we want to focus our efforts on creating a safe and fun experience for the TikTok community.”
The company has also decided to stop some of its behaviors that could compromise user privacy in the future. For example, biometric data is no longer stored or tracked, and information is no longer sent outside of the United States.